New Delhi: Prices of gold and silver have witnessed a significant decline in recent weeks, even as geopolitical tensions between the United States, Israel, and Iran continue to escalate. Contrary to the usual trend where precious metals gain value during periods of conflict, the market has taken an unexpected turn this time.
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According to data released by the India Bullion and Jewellers Association, the price of 24-carat gold has dropped by ₹12,077 per 10 grams, bringing it down to approximately ₹1.35 lakh. This marks a steep fall from its earlier level of ₹1.47 lakh and is being described in reports as one of the sharpest declines in nearly four decades.
Silver has followed a similar trajectory. The price of one kilogram of silver has fallen by ₹30,864, settling at around ₹2.01 lakh. Just days earlier, it was trading at ₹2.32 lakh per kilogram. Over the past 24 days alone, gold has become cheaper by nearly ₹24,000, while silver has plunged by over ₹65,000.
Why Prices Differ Across Cities
Gold prices are not uniform across India, and several factors contribute to this variation. Transportation and security costs play a key role, as moving gold between cities involves significant expenses. Demand also impacts pricing—regions like South India, where consumption is higher, often benefit from bulk purchasing discounts.
Additionally, local jewellery associations in different states determine prices based on regional demand and supply. Another important factor is inventory cost; jewellers who purchased gold at lower prices in the past may offer better rates to customers.
Price Journey: From Peak to Present
Gold prices saw a strong rally at the beginning of the year. On December 31, 2025, gold was priced at around ₹1.33 lakh per 10 grams. Within a month, it surged to an all-time high of ₹1.76 lakh on January 29, 2026. However, since then, prices have dropped sharply, falling by about ₹41,000 from their peak.
Silver experienced even more dramatic fluctuations. Starting at ₹2.30 lakh per kilogram at the end of 2025, it soared to a record ₹3.86 lakh in late January. Since then, it has seen a massive correction, declining by ₹1.84 lakh in just over 50 days.
What’s Driving the Decline?
Market experts point to a shift in investor behavior as a key reason behind the fall. Instead of turning to precious metals as safe-haven assets during conflict, investors are increasingly choosing liquidity.
Many are selling off gold and silver holdings to accumulate cash, aiming to stay financially flexible amid uncertainty. Profit booking has also played a major role, as investors who bought earlier capitalized on January’s record-high prices, increasing supply in the market.
Another contributing factor is the stance of the Federal Reserve in the United States. Its tighter approach toward interest rates has reduced the appeal of non-yielding assets like gold and silver.
Commodity expert Ajay Kedia suggests that the downward trend may continue in the near term. He advises investors to remain cautious and avoid fresh investments in gold and silver for now.
Overall, the current market trend highlights a rare scenario where global uncertainty is not boosting, but instead weakening, the value of traditional safe-haven assets.
